trending Market Intelligence /marketintelligence/en/news-insights/trending/9xcnjs8ykXh76HmeS1xqGg2 content esgSubNav
In This List

Brazil central bank lowers benchmark rate to 7.0%

Blog

Beyond ESG with Climate Stress Testing: Getting Practical at Banks & Insurers

Blog

Post-Webinar Q&A: Integrating Climate Risks into Credit Risk Portfolios

Blog

Insight Weekly: Hurricane Ida impact; banks seek PPP forgiveness; commodities boom disruption

Blog

Fund Financing Through a Credit Lens Digging Deeper on Credit Risk Factors for Alternative Investment Funds


Brazil central bank lowers benchmark rate to 7.0%

Banco Central do Brasil said its monetary policy committee, known as Copom, unanimously decided to decrease the Selic rate by 0.5 percentage point to 7.0% per year.

The Brazilian central bank said that indicators of economic activity released since the last Copom meeting are consistent with the gradual recovery of the Brazilian economy.

Copom said that the reduction in the Selic rate is appropriate based on the stage of the monetary easing cycle and the fact that the baseline inflation scenario is evolving as expected.

Inflation expectations declined to around 2.9% for 2017 but stood at 4.2% for both 2018 and 2019, according to Copom.

The committee said that these forecasts assume "a path for the policy interest rate that ends 2017 and 2018 at 7.0%, and 2019 at 8.0%."